Today was a learning experience for investors in many ways. Global stock markets suddenly began to slow after the previous week’s rally. Palantir Technologies’ third-quarter results, in particular, fell short of investor expectations, putting pressure on technology stocks. Wall Street experts also warned that stock prices are currently elevated and the market could decline by more than 10% in the coming months.
Palantir and AI Stocks Under Pressure
Global Stock The S&P 500 saw narrow, tech-led gains over the past few weeks, but futures are now down. Tesla and Nvidia, the “Magnificent Seven” the largest AI-related companies, were the hardest hit. The Nasdaq 100 also saw a 1.2% decline, and Palantir shares fell more than 7% in the premarket. Palantir outperformed expectations in its third-quarter sales and raised revenue estimates, but investor selling pressure kept it under pressure.
Global Stock Experts say market valuations are currently too high. Mike Gitlin, CEO of Capital Group, said at the Hong Kong Monetary Authority Financial Conference that corporate earnings are strong, but valuations are challenging. Hedge fund manager Michael Burry also disclosed bearish bets on Palantir and Nvidia, adding to investor anxiety.
Dollar, Gold, and Bitcoin Situation
Global Stock The dollar rose to its highest level since May following mixed comments from Federal Reserve officials in the United States. The 10-year Treasury yield fell two basis points to 4.09%. Gold prices fell for the third consecutive day, while Bitcoin is heading toward its lowest level since June.
From a Wall Street Perspective
Global Stock The heads of Morgan Stanley and Goldman Sachs said in Hong Kong that the market could decline by more than 10% over the next 12–24 months. He saw this as a “healthy correction,” as the S&P 500 has risen more than 35% since its April lows, driven by a surge in AI-related tech megacaps. According to Bloomberg’s Macro Strategist Skylar Montgomery Koning, this is part of normal market behavior, and the average peak-to-trough decline for the S&P 500 over 55 years has been around 15%.
Market Reactions in Europe and the UK
Global Stock UK Finance Minister Rachel Reeves hinted that tax increases may be needed for fiscal consolidation. Following this news, UK bonds performed better than their European counterparts. The 10-year gilt yield fell two basis points to 4.41%, while the pound weakened. European stock markets fell 0.8%, and commodities were also under pressure; copper fell more than 2%, and Brent crude was trading at $64 per barrel.
Results from Major Companies
Global Stock Some major companies also reported their quarterly earnings. Archer-Daniels-Midland Co. lowered its adjusted earnings guidance for the year, and its shares fell 9.7%. Pfizer improved its 2025 profit forecast. Uber Technologies reported its strongest quarterly growth. BP Plc’s profits exceeded expectations. Ferrari NV reported strong third-quarter earnings, and Saudi Aramco also surpassed analyst expectations. India’s Adani Enterprises Ltd. reported an 84% quarterly profit increase and approved a $2.8 billion rights issue.
After the global stock market rally, it’s clear that investors need to remain cautious. The results of Palantir and other AI-related stocks, uncertainty over Federal Reserve policy, and elevated valuations indicate that a market correction remains possible. Investors should remain patient and make decisions with a long-term perspective.
Disclaimer: This article is for informational purposes only. Please consult your financial advisor before making any investment decisions. Investing in the stock market involves risk and the possibility of capital loss.
Also Read
SpaceX Moves $133M in Bitcoin: Why Best Wallet Token Could Ride the Next Institutional Wave
Bitcoin Price Holds Steady Near $110,000 November Could Decide The Next Big Trend
